2021 was particularly busy for the property market in Northeast Brazil, with all price echelons experiencing strong sales. As the latest figures show, luxury property in Ceará fared especially well and as a result, saw an increase of 109% in sales. Analysts attribute the huge uptick to pent-up demand from high-end buyers and a favourable market in the area.
Figures for luxury property in Ceará
According to the Ceará Civil Construction Union (SECOVI-CE), the total value of luxury property sales in the state reached R$340 million last year. This represents an increase of 109% on 2020.
Most of the homes were sold in Fortaleza in new developments launched last year. Sales totalled 92 apartments, all priced in excess of R$5 million.
Characteristics of the luxury homes
“During the pandemic, high-net-worth individuals looked for an even higher quality of life,” said Sergio Porta, President of SECOVI-CE. He explained that they found this in properties with at least 250 square metres of space and priced at R$20,000 per square metre.
He likened the properties’ characteristics to those of a 5-star hotel. For example, sea views are highly sought-after, as are properties with private roof terraces. And the more exclusive the area, the better.
Characteristics of buyers
For Luiz Franca, President of the Brazilian Developers Association (ABRAINC), the high-end sector is “less sensitive to economic scenarios” and “even less dependent on loans”. In addition, he pointed out that many buyers purchase for investment purposes since property protects capital from inflation.
Despite its high price tag, luxury property in Ceará is considerably cheaper than in other Brazilian cities such as Rio de Janeiro. As a result, the state has entered the radar of Brazil’s rich and famous. According to a Diario do Nordeste report on the sector, several singers and artists bought luxury homes in Ceará last year.
Outlook for 2022
Franca believes that high-end real estate can look forward to another good year in 2022. “In large cities, there isn’t much available land in the best areas, so luxury products are highly sought-after,” he said. This conclusion leads him to be optimistic about the luxury market this year.
Analysts also point out that the high-end real estate market in Ceará remains small despite more launches last year. As a result, there’s pent-up demand among buyers.
Luxury property in Brazil
Sales in Ceará reflect the general trend in the country as a whole. According to ABRAINC, high-end real estate transactions in Brazil went up by 47.4% in Q3 last year. While in Northeast Brazil, they rose by 37.1%.
(Source: SECOVI-CE, ABRAINC)
